Question

Hector needs to borrow $20000 to pay a contractor for a home addition. The bank is offering him a 4.8% simple interest loan and is charging $4800 in interest during the life of the loan. How long is the life of the loan?

Answer 1

what's the equation for simple interest?

Answer 2

I = PRT

Answer 3

I = 4,800
P=20,000
R=4.8%
T=X

Right?

Answer 4

yes i guess..

Answer 5

That would be correct...just rearrange and solve for T

Answer 6

So you would be solving the equation

\[T = \frac{ I }{ PR }\]

Just plug in all your numbers and you'll be all set!

Answer 7

5?

Answer 8

That would be correct! :)

Answer 9

Your awesome :D

Answer 10

haha anytime! :)